- It seeks to gain from the misguided market or stock movement, thus is directed towards the actual market or stock-price level. In this way, it helps in increasing the market efficiency in long term.
- It helps keeping the investor out of succumbing to herd mentality where mostly the early movers walk away with largest share of profit.
- If applied using valuation measures strategy, it can give returns higher than average market return over long term in efficient markets.
Strengths of Contrarian Investing
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